How to use this calculator
To use the rental yield calculator and get your forecast, simply enter the following information:
- 1. Enter your purchase price and loan percentage. Based on this, the calculator will generate your total deposit amounts.
- 2. Enter your stamp duty, solicitor cost, valuation cost, as well as any other purchasing costs. Based on this, the calculator will generate your total amount of cash required.
- 3. Enter your first year net income, rental increases (percentage), term of ownership and loan interest rate
- 4. Confirm whether you will be using rental profits for debt reduction and if you are how much of this profit WON’T go to debt reduction.
- 5. Click “Calculate” to see your results.
If you’d like to discuss or clarify your breakdown with the help of an experienced professional, contact our friendly team of buyer’s agents.
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How does this calculator work?
The calculator takes multiple factors into account, to ultimately determine your projected returns. Many factors influence your net return on investment: including rental income,
stamp duty, loan interest rates and other purchasing costs. While this tool is able to predict your overall returns with accuracy, it is only intended for use as a guide.
Calculating your income
To determine your overall growth, it is important that the calculator takes your rental income into account. As a commercial property investor, rental yields will form an
important part of your taxable income. The rental yield calculator needs to know this information so it can work out the benefits you may be able to access e.g.
depreciation and negative gearing.
Things to keep in mind
It’s important to bear in mind that this calculator does not account for factors such as unexpected expenses, depreciation or natural events. These factors can impact your overall
profits either negatively or positively, but are impossible to predict. With this in mind, it’s advisable to contact a property investment expert: they can help you better understand
whether your potential investment is right for you.